Slides
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Q2 2024 Conference Call August 7, 2024 12:00 P .M. E.T . Allen Palmiere, President & Chief Executive Officer Alberto Reyes, Chief Operating Officer Chet Holyoak, Chief Financial Officer
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Cautionary Notes Cautionary Note Regarding Forward-Looking Statements Except for statements of historical fact relating to us, certain statements contained in this presentation constitute forward- looking information, future oriented financial information, or financial outlooks (collectively “forward- looking information”) within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking information may be contained in this document and our other public filings. Forward- looking information relates to statements concerning our outlook and anticipated events or results and, in some cases, can be identified by terminology such as “may”, “will”, “could”, “should”, “expect”, “plan”, “anticipate”, “believe”, “intend”, “estimate”, “projects”, “predict”, “potential”, “continue” or other similar expressions concerning matters that are not historical facts. Forward-looking statements in this presentation are based on certain key expectations and assumptions made by us. Although we be lieve that the expectations and assumptions on which such forward- looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because we can give no assurance that they will prove to be correct. Forward- looking statements are subject to various risks and uncertainties which could cause actual results and experience to differ mate rially from the anticipated results or expectations expressed in this presentation. The key risks and uncertainties include, but are not limited to: local and global political and economic conditions; governmental and regulatory requirements and actions by governmental authorities, including changes in government policy, government ownership requirements, changes in environmental, tax and other laws or re gulations and the interpretation thereof; developments with respect to worldwide pandemics, including the duration, severity and scope of the pandemic and potential impacts on mining operations; and other risk factors detailed from time to time in our reports filed with the Securities and Exchange Commission (“SEC”). Forward-looking statements in this presentation include statements regarding our ability to add to our mineral resource estimate at DDGM in the near- or mid-term; scope and timing of work at the Back Forty Project; and guidance for 2023, including payable production, cash costs after co-product credits, all-in sustaining costs, capital investment, exploration spending, and G&A spending. These statements are subject to risks and uncertainties, including modifications that may be made during the preparation of the fea sibility study or in connection with the permit process, changes in interpretations of geological, geostatistical, metallurgical, mining or proces sing information, and interpretations of the information resulting from exploration, analysis or mining and processing experienc e. The Company assumes no obligation to update this information. Additional risks relating to the Company may be found in the periodic and c urrent reports filed with the SEC by the Company, including the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. Such forward-looking information and statements are based on a number of material factors and assumptions, including, but not limited in any manner to, volatility in commodity prices; changes in interpretations of geological, metallurgical, mining or pr ocessing information; interpretations of the information resulting from exploration, analysis or mining and processing experience; une xpected increases in costs; general economic conditions; and other factors disclosed in any other of our filings with the SEC. While we consider these factors and assumptions to be reasonable based on information currently available to us, they may prove to be incorrect . You should not place undue reliance on forward-looking information and statements. Forward-looking information and statements are only predictions based on our current expectations and our projections about future events. Actual results may vary from such forward-looking information for a variety of reasons including, but not limited to, risks and uncertainties disclosed in our filings on our website at www.goldresourcecorp.com, on EDGAR at www.sec.gov and other unforeseen events or circumstances. Other than as required by law, we do not intend, and undertake no obligation to update any forward-looking information to reflect, among other things, new information or future events. Cautionary Note Regarding Non-GAAP Measures This presentation includes certain terms or performance measures commonly used in the mining industry that are not defined under the United States of America generally accepted accounting principles (“GAAP”), including free cash flow, cash costs and AISC per payable ounce of gold and silver sold, realized metal prices, earnings before interest, taxes, depreciation and amortization (“EBITDA”), adjusted attributable net income, adjusted basic attributable earnings per share, consolidated cash and consolidated net cash. Non- GAAP measures do not have any standardized meaning prescribed under GAAP and, therefore, they may not be comparable to similar measures employed by other companies. We believe that, in addition to conventional measures prepared in accordance with GAAP, certain investors use this information to evaluate our performance. The data presented is intended to provide additional info rmation and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAA P. Cautionary Note Regarding Feasibility Study The Company uses the term “feasibility study” to refer to the technical and economic study it is preparing for the Back Forty Project. In order to qualify as a “feasibility study” as defined under Subpart 1300 of Regulation S-K (“S-K 1300”), the study must meet certain requirements, including, for example, that operating and capital cost estimates in the study must, at a minimum, have an accurac y level of approximately ±25% and a contingency range not exceeding 15%. Because the Company has not yet completed its analysis for the proposed study, there is no assurance that the study, when completed, will meet the definition of a “feasibility study” a s defined under S-K 1300.
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Headlines • Strengthened Mexican leadership team executing strategy • Exploration progressing as planned • Increase Metal Prices • Weakening Peso
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DDGM Full Year Exploration Program • 30 exploration drill holes • totaling over 2,652 meters • 16 infill drill holes • totaling 5,949 meters • Focused efforts: • Three Sisters • Splay 31 • Gloria • Marena • South Soledad & Sagrario
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Q2 2024 Operational Results Tonnes Processed Q2 2024 YTD 2024 Total tonnes 93,687 192,576 Tonnes per day (based on actual days the mill operated during the period) 1,301 1,315 Metal Sold Q2 2024 YTD 2024 Gold ounces 2,724 6,281 Silver ounces 234,560 451,095 Gold equivalent ounces 5,625 11,688 Copper tonnes 197 461 Lead tonnes 491 1,158 Zinc tonnes 1,771 3,453
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Q2 2024 YTD 2024 2024 Guidance Sustaining ($000s) ($000s) ($000s) Underground Development $1,307 $2,657 Infill Drilling 345 786 Underground and Surface Exploration Development - 2 Other Sustaining Capital 569 851 Subtotal of Sustaining Investments: 2,221 4,296 $8,800 – 11,000 Growth Surface Exploration/Other 146 1,045 Underground Exploration Drilling 38 38 Back Forty Project Optimization & Permitting 142 347 Subtotal of Growth Investments 326 1,430 $3,200 – 5,200 Total Capital & Exploration Investment 2,547 $5,726 $12,000 – 16,200 Investment Summary
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Financial Measures For the Six Months Ended March 30, 2024 Cash balance (at June 30, 2024) $ 5.3 M Cash provided by operating activities $1.4 M For the Three Months Ended June 30, 2024 For the Six Months Ended June 30, 2024 Net loss $(27.7) M $(31.8) M Net sales 20.8 M 39.5 M Production cost 17.8 M 33.9 M Depreciation, Amortization & Reclamation 5.8 M 10.0 M Mining gross (loss) profit (3.6) M (5.8) M Total cash costs per AuEq ounce $1,950/oz $ 1,789/oz Total all-in sustaining cost per AuEq ounce $2,661/oz $ 2,452/oz Note: Total cash costs after co-product credits per AuEq ounce and Total all-in sustaining costs after co-product credits per AuEq ounce are a non-GAAP financial measures. Please see the Reconciliation of Non-GAAP Financial Measures on the 2023 Form 10-K filed with the SEC (refer to www.sec.gov/edgar).
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DDGM Cash Costs Note: Cash costs after co-product credits per gold equivalent ounce is a non-GAAP financial measures. Please see the Reconciliation of Non-GAAP Financial Measures on the 2024 Form 10-Q filed with the SEC (refer to www.sec.gov/edgar).
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Why Gold Resource Corporation? • Focused on protecting balance sheet while creating value through highly disciplined growth & capital allocation • Commitment to health & safety, environment, and social stewardship • Strong leadership, technical, and operational team
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Aguila mill, Oaxaca Mining Unit, Mexico Questions